30 January 2026

 

Ignite Next launched as a pan-European, non-dilutive scale-up programme in December 2025, at a time when Europe is openly trying to reduce critical technology dependencies and make its economy more resilient — goals now embedded in EU policy, from the European Chips Act to the Strategic Technologies for Europe Platform (STEP).

For years, Europe has been strong at research and early innovation, but weaker at turning breakthroughs into scaled companies that remain rooted on the continent. The consequences are not only economic. In areas such as semiconductors, quantum technologies, secure communications, industrial automation and energy systems, the ability to scale companies is increasingly framed as a matter of strategic resilience.

Ignite Next is one attempt to address the long-standing “how do we scale?” question more directly. Whether it can help shift Europe’s overall trajectory remains uncertain — and Europe should be clear-eyed about what such programmes can and cannot achieve.

Strategic autonomy meets startup reality

European policymakers increasingly speak of “reducing dependencies” rather than decoupling. The European Chips Act explicitly links semiconductor capacity to supply-chain resilience, while STEP is framed as supporting leadership in digital, clean and biotech technologies while lowering reliance on non-European providers.

Deep tech startups sit at the centre of this agenda because they produce technologies that become infrastructure: components, systems and processes on which entire industries depend. But deep tech scaling is rarely fast. A working prototype is not the finish line; it marks the beginning of a long phase involving pilots, industrial integration, manufacturing readiness, procurement cycles and — in many sectors — regulatory approval.

This is where Europe has repeatedly struggled. Not because it lacks accelerators or funding schemes, but because the obstacles are structural: fragmented markets, slow and risk-averse procurement, conservative industrial buyers, and funding gaps precisely when companies become most expensive to build.

Ignite Next and the effort to keep scale-ups European

This is the gap Ignite Next aims to address. The programme is non-dilutive and focused explicitly on scale-ups rather than ideation. It does not promise capital; instead, it offers access to experienced operators and industrial insight, targeting founders who already have validated technology but face execution challenges.

According to reporting by Tech.eu, Ignite Next was designed to help turn “breakthrough science into industrial success” through a founder-first model and hands-on support. The programme is also connected to large industrial and technology partners, including Infineon, Intel and Synopsys, reflecting a belief that proximity to established industry matters when selling into complex markets.

The logic is sound. Europe does not simply need more startups; it needs more industrialised startups. That requires operational expertise — people who understand supply chains, quality systems, certification pathways and enterprise procurement.

A fair caveat remains: execution support improves readiness, but it cannot create demand. Mentorship and introductions help, but they do not force adoption.

Public funding as a tool for technological resilience

If private programmes focus on access and guidance, public funding increasingly provides something else: time.

The European Innovation Council (EIC) has become a central instrument in Europe’s deep tech strategy. Through the EIC Accelerator, startups can receive grants of up to €2.5 million, alongside optional equity investment and business acceleration services.

This non-dilutive funding can be decisive at stages where private capital is cautious. Finnish quantum hardware company SemiQon, for example, used EIC grant funding to advance silicon-based quantum processors — technology Europe increasingly views as strategically important. Spanish photonics company Ipronics relied on similar support to develop programmable chips for next-generation computing and communications.

These cases do not prove that the system works at scale. They do show that Europe is willing to back complex technologies beyond the prototype stage — a prerequisite for any credible independence strategy.

STEP Scale Up: larger cheques, unresolved bottlenecks

In 2025, the EIC introduced STEP Scale Up under the Strategic Technologies for Europe Platform, targeting investment rounds of €10–30 million. With a reported €300 million budget in both 2025 and 2026, the intent is clear: prevent strategically important deep tech companies from being forced to seek late-stage funding outside Europe.

The unresolved question is whether capital alone is sufficient. Industrial scaling requires customers willing to buy at scale. Europe’s industrial base is large but fragmented, with procurement and standards often organised nationally. Without faster adoption and clearer demand signals, larger cheques may keep companies alive — while still pushing them to expand commercially elsewhere.

Defence innovation shows what clarity can do

One area where Europe and its allies have moved more decisively is defence and security. NATO’s Defence Innovation Accelerator for the North Atlantic (DIANA) provides non-dilutive €100,000 grants to companies entering its accelerator, alongside access to test centres and defined operational requirements.

For startups such as Denmark’s QuadSAT, which develops drone-based antenna testing systems, this combination of funding and validation has accelerated credibility in specialised markets.

The contrast is instructive. Defence innovation benefits from clear priorities and committed buyers. Civilian deep tech markets often lack that clarity, leaving startups caught between policy ambition and hesitant procurement.

Sector-specific ecosystems reduce friction

Europe has made progress where support is sector-specific rather than generic. The European Space Agency operates the ESA Business Incubation Centres (ESA BICs), described by ESA as the largest network of space-focused incubators in Europe. In late 2025, ESA reported that the network had supported 2,000 startups.

Sector alignment matters for resilience. It keeps expertise, testing facilities and early commercial pathways inside Europe, reducing pressure on founders to relocate in order to scale.

Startup hubs as long-term resilience infrastructure

Beyond individual programmes, institutional continuity plays a crucial role. Startup hubs such as UnternehmerTUM, affiliated with the Technical University of Munich, combine research, industry partnerships and capital access over decades rather than cohorts. Ranked by the Financial Times as Europe’s leading startup hub, UnternehmerTUM illustrates how long-term structures can anchor innovation locally.

Europe’s progress — and its unresolved test

Europe’s deep tech strategy is becoming more realistic. Ignite Next reflects a shift away from pitch-centric support towards execution. The EIC Accelerator provides meaningful non-dilutive funding. STEP Scale Up acknowledges the scale-up capital gap. Sector-specific networks show what works when support aligns with real markets.

Yet Europe should resist declaring success too early. Support structures are improving faster than adoption conditions. Independence and resilience will not be delivered by programmes alone, but by customers willing to buy, regulators willing to align, and markets willing to scale across borders.

Until those demand-side conditions catch up, Europe may keep building better runways — while watching too many of its most promising aircraft take off elsewhere.

 

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